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How to Start Corrugated Carton Box Manufacturing Business
Many times you have seen such kind of corrugated boxes when you ordered something from online e-commerce stores like Amazon, Myntra and Flipkart. Meaning of corrugated boxes, cardboard boxes, paper boxes, carton boxes are premade boxes that are mainly used for packaging goods and other things. These carton boxes are recyclable.
Now, if you want to start your corrugated carton box making business then you are on the right path. Here, in this article, we will help to describe basic guidelines to start this business. This business plan mainly includes guidelines, market potential, legal permissions, machinery, raw materials and production method.
Generally, these boxes available in different shapes and sizes. These boxes come under the packaging solution category but product manufacturers use these boxes as outer packaging boxes. Corrugated boxes use for the shipping of goods as they give proper support in large packaging and during transportation. These boxes are mainly preferred by everyone due to their high durability, light-weightiness, high strength, appealing aesthetic value, cost-effectiveness, and recyclability.
With a medium startup investment, you can invest in this type of business. Commencing this type of business not required any major educational degrees or background although you need proper planning, good investment and networking skills. It is a B2B business. Consequently, other organizations are your customers.
By writing this article, we provide information on the corrugated boxes manufacturing business, its manufacturing process, machinery and other equipment used in this box making and how to commence this corrugated box manufacturing business.
Corrugated Box Market Potential
Corrugated boxes are an unavoidable part of the manufacturing sector as the packaging of material always required corrugated boxes. They completely depend on corrugated packaging for finished goods transportation and handling.
Considering different qualities of corrugated boxes like they are a lightweight, easy to store and easily disposable means recyclable and as a result, corrugated boxes are environment friendly and around 80% of industrial packaging is done using corrugated boxes. Packaging of products is always done using these corrugated boxes, as they are cheap and today many e-commerce industries like Flipkart, Amazon, and Myntra are using this for packaging purposes.
Growing industry, mainly in emerging economies like Brazil, China, India is expected to increase trade activities in corrugated boxes business and the Asia Pacific has maximum demand share in the global market. The demand is very high and this industry considers as the fastest growing sector of the packaging market. But in this business, freight has a major role because this product is cheap and bulky and requires a lot of space and due to this business location is always close to your customer.
Considering e-commerce is a major buyer of cardboard, the growth of this sector is expected to fuel the demand for corrugated boxes market over the coming years. Following are the major areas where corrugated cardboard boxes are used:
Food and beverage products
Personal and household care goods
Glassware and ceramics
Rubber & rubber products
Other nondurable goods
Advantages of Using Corrugated Cardboard Box over the Packaging Material are:
- Cardboards have good potential to hold graphics and printing is also good and clear, therefore, to attract consumers business man fix logo, company name and other promotional details on their packaging.
- The demand for corrugated boxes for packaging purposes is increasing in several industries because this is the cheapest form of packaging and helps to reduce final product price on basis of bundling with packaging.
- Corrugated boxes occupy less space as they can be easily folded and stacked when not in use.
- When compared with metal containers, they do not undergo any chemical reaction with food and beverages product therefore, highly recommendable.
- Corrugated boxes are environment friendly due to their biodegradable and recyclable properties and they have less impact on the environment.
- Due to lightweight and easy to handle during transportation corrugated boxes are preferred everywhere. Also, they are cost effective and sustainable.
Corrugated boxes for packaging available in different sizes and shape with 3-ply, 5-ply and 7-ply etc. for successful business and well growth, it’s highly recommended that you understand each and every point about the product and various factors of packaging. It is appreciable if you join some course at the Indian Institute of Packaging for more understanding although there is not any requirement for such courses this type, of course, is helpful for better understanding.
Machinery for corrugated box manufacturing
To start this type of business, you need machinery which you can buy from local manufacturers or through online B2B marketplaces like Indiamart. Following machines are required to start Corrugated Carton Box making business:
- Face Paper corrugation Machine
- Board Cutters
- Sheet Pasting Machine
- Sheet Pressing Machine
- Bar Rotary Cutting and Creasing Machine
- Eccentric Slotted Machine
- Stitching Machines.
The most important thing, before buying machines always check customer reviews and then negotiate for the price and also ensure that warranty period is available for the machines.
Raw Material required for corrugated box manufacturing
The primary raw material used to make corrugated cardboard is fast-growing pine trees which mature, harvested and replaces with seedlings and then stripped of their limbs and only trunk used by a pulp mill to convert kraft paper. At the paper mill, the harvested tree trunks are converted by kraft process also called sulphate process because in this process chemical used to break down wood chips into a fibrous pulp and this sent directly to a paper machine where it is formed, pressed, dried and rolled into the wide heavy rolls of kraft paper to make cardboard. Other raw materials used in this are glue, stitching wire, yellow strawboard etc.
Any type of business when you start, you need to complete legal compliances like you need to obtain a trade license from the local authority and also obtain a factory license. Also, take GST registration and side by side apply for consent for establishment and consent for operation both from the Pollution Control Board (PCB).
Corrugated Board Making Process
Firstly, by using corrugated paper sheet corrugated board produce and glue application on the facings of flat paper and corrugated machine used for the corrugation of flat sheet and by this corrugated flexible 2 ply boards prepared. Now pass this paper through the heated fluted rolls to get corrugated paper and next sheet contact with the previous sheet using glue at the tips. These two sheets get pasted together to form rolls and resulting roll called single face or 2-ply corrugated board.
Using board cutter machine rolls are cut and glue applies on the corrugated side of the pasting machine and finally the third ply pasted over it. Now doing all this you get double face or 3 ply corrugated board. Similarly, by pasting the board overboard you can make thicker boards i.e. 5-ply, 7-ply and 9-ply boards.
Cardboard Box Producing
Now, first of all, dry these sheets and process further to produce corrugated boxes. For producing cartons, take orders from different clients and as per dimensions produce boxes. For carton production dimensions like length, width and depth required in the proportion of 2:1:2 or you can use another dimension as per client specifications and also you can produce printed cartons if the requirement is given by the client.
For producing cartons you must follow BI guide in the cardboard box making business and specifications published by BIS (Bureau of Indian standards) for different applications.
Marketing is a very important part of any business and for this, you always focus on the quality of the product you produce. Always purchase high-quality raw material to produce high-quality product. For good marketing follow some points like:
- Approach companies that required corrugated boxes.
- Contact companies like pharma, food industry and e-commerce industry whose requirement is very high.
- List your business in popular B2B portals like trade India and Indiamart, just dial which helps in contacting clients for further business.
- Attend Trade fairs and join business expos that focus on the paper and packaging industry like PackPlus, PackEx and PaperEx.
- Always keep yourself updated on the related industry and understand what is happening in the current time in the carton industry.
Project Report Format
In our project report format, we cover technology details, its diagrams, flow chart etc.. as and when required or deemed fit to include. Also, prepare in-depth financial calculations including CMA which is necessary for the Investor/bank.
Key Points Cover in Details Project Report on Whey Corrugated Paper Box Manufacturing
As mentioned above, Corrugated Paper Box Manufacturing Detail Project Report (DPR) is a complete package that contains everything that requires getting funds up to 25 Crores (Twenty Five Crores). Checkout our DPR sample to make your vision more clear. Usually, the Detailed Project Report (DPR) is needed when you apply for a bank loan or Government scheme. Project Report Bank aims to create the reports accurately from the start and make sure that businessmen get the right value and results from the reports.
The following are the key points we generally covers while making DPR, whichever relevant to your business :-
- Introduction to Project and Industry
- Executive Summary
- Profile of the business in the country
- Project Evaluation – Social Angle
- Analysis of basic variables
- Socio- Economic Advantage
- Impact on environment
- Foreign Trade Income
- Value addition
- Import replacement
- Technology assimilation and so on
- Present condition of the business
- Consumer Inclinations
- Market Prerequisites
- Market Portions
- Distribution Channels
- Market Qualities of the Item
- Export Possibilities and Global Market
- Marketing and selling game plans
- SWOT Analysis
- Particulars Of Existing / Proposed Bank Credit Facilities (Form – I)
- Projected Profitability Statement ( Form – II)
- Projected Balance Sheet (Form – III)
- Comparative Operation Statement (Form – IV)
- Maximum Permissible Bank Finance MPBF – (Form – V)
- Cash Flow Statement – (Form – VI)
Monetary Projections Details Contains:
- Cost of Project & Means of Finance
- Details of Raw Materials
- Details of Utilities
- Human Resources Planning
- Technical Manufacturing Business Process
- Assumptions in monetary projections
- Projected Sales & Production
- Cost of Production and Profitability
- Fund Flow Statement
- Working Capital Cycle
- DSCR – Debt Service Coverage Ratio
- BEP – Break Even Point Analysis
- IRR – Internal Rate of Return
- ISCR – Interest Service Coverage Ratio
- Calculation of payback period
- Debt to Equity Ratio
- Working Notes for Monetary Projections
- EBIT – Earnings before interest and taxes
- EBITDA – earnings before interest, taxes, depreciation, and amortization
- Cash Burn Rate
- Discounted Cash Inflow & Outflow
- NPV – Net Present Value
- Net Worth
Report Size : 40 – 50 Pages,
In which, Financial Projections : 18 – 20 Pages
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This is a growing sector and demand is very high for the corrugated industry however you need some amount in your pocket to start this business as the machinery cost is high but in the end, you can earn good profit. Due to the higher number of players competition is high in the market but you earn profit margins if you are capable of making clients, have a USP and capable of building your brand.
We suggest firstly learn this business under some guidance and then go for it, as this is a highly competitive business.
Q.1 What type of plant one can set up in India?
Two types of plants can be set up one is a Semi-Automatic box-making plant and the other is Fully Automatic. The businessman whose budget is low can start with small scale Semi-Automatic plant. Investment in this is around 20,00,000/- minimum and output start from 4 to 5 ton per day and those go for big scale production with fully automatic plant their investment is minimum 2,50,00,000/- and increase speed as per the level of automation.
Q.2 How much land is required to start this plant?
For an automatic plant 30,000 sq.ft minimum area required however if you start with a semi-automatic plant then 5000 sq.ft. minimum requirement. But it is recommended that consult with some consultants if you start the automatic plant.
Q.3 Why transportation is important in your business?
Transportation is an important part of any business as this affects your business cost. If your factory is at a far location from your customer then transportation costing increases and your competitors can take advantage of that. Also, proper road connectivity is required.
Q.4 What are the characteristics of printing inks used for corrugated packaging?
|Oil based inks||Quick drying inks||Flexo inks|
|Composition of vehicle||Contain dissolved drying oils and synthetic resins||Contain dissolved glycol and synthetic resins||Alkali aqueous solution of synthetic resins, emulsion|
|Drying mechanism||Oxygen polymerization||Absorption and permeation||Absorption and evaporation|
|Drying time||4 – 5 hours||20 – 30 minutes||0.5 – 1 second|
|Ink viscosity||100 – 200 poises||100 – 200 poises||2 – 3 poises|